1. Q = a₁₂H + a₂L + a¸ H² + a₁₂L² + a¸ HL, where a, >0 2. Q=aHLY, where a, a, y >0. a) Derive the equation of the relevant Isoquant. b) Find out whether the production function is well behaved.

1. Q = a₁₂H + a₂L + a¸ H² + a₁₂L² + a¸ HL, where a, >0 2. Q=aHLY, where a, a, y >0. a) Derive the equation of the relevant Isoquant. b) Find out whether the production function is well behaved.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 38CTQ: Do you think that the taxicab industry in large cities would be subject to significant economies of...

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Question

Q = a,H + a,L +a,H² +a¸L² +a‚HL , where a,>0
2. Q = aH " L, where a, a, y> 0
a) Derive the equation of the relevant Isoquant.
b) Find out whether the production function is
well behaved.

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Step 1: Define Production Function

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Step 2: a) Derive the Equation of the Relevant Isoquant

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Step 3: b) Determine if the Production Function is Well Behaved

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